Which of the following is NOT an argument against using monetary policy to prick asset-price bubbles?

Which of the following is NOT an argument against using monetary policy to prick asset-price bubbles?




A) The effect of increasing interest rates on asset prices is uncertain.
B) A bubble may only exist in some asset-prices and monetary policy will affect all asset prices.
C) Using monetary policy to prick an asset-price bubble may have adverse effect on the aggregate economy.
D) Even though credit-drive bubbles are easier to identify, they are still relatively hard to identify.


Answer: D